Mohali Development Body fined, directed to allocate plot or refund money

The Greater Mohali Area Development Authority (GMADA) has been found responsible for not fulfilling its obligation to provide a plot with promised amenities within the specified timeframe. As a result, the Punjab State Consumer Disputes Redressal Commission has ordered GMADA to either hand over possession of the plot or refund the money. In addition, the authority has been fined Rs 40,000 as compensation for causing mental distress and harassment, as well as covering the costs of litigation.

The decision was made by the commission panel consisting of H P S Mahal, the presiding judicial member, and Kiran Sibal, the member. The ruling came after a complaint was filed by Davinder Singh and Hardeep Kaur, who are residents of Sector 71 in Mohali.

The complaint revolves around a plot purchased by the complainants in Gateway City, Sector 118-119, Mohali, from Suryansh Mohan. The Greater Mohali Area Development Authority (GMADA) communicated the Letter of Intent (LOI) for this plot.

According to the terms of the LOI, the possession of the plot was supposed to be granted within 18 months from the issuance of the letter. The tentative price of the plot was set at Rs 53,89,860, calculated at a rate of Rs 21,000 per square yard. The complainants duly paid this amount in accordance with the authority's terms and conditions.

Subsequently, the complainants were entitled to receive possession of the plot upon the completion of development works, and the authority was legally obligated to provide possession within 18 months from September 21, 2016.

The complainants further alleged that they discovered that a portion of the plot was being claimed by a third party, and a dispute regarding this matter was pending in the civil court in Mohali. The authority had not disclosed this information until the filing of the present case, according to the complainants. They strongly argued that the opposite party, GMADA, had failed to complete the development works at the site. Additionally, they pointed out issues such as flooding during the rainy season and the lack of security or a boundary wall that needed to be addressed by the authority.

After considering the arguments presented by the counsels representing both parties, the commission concluded that it was evident that the authority had failed to complete the development works at the site and failed to deliver possession of the plot to the complainants within the agreed-upon timeframe, along with the promised facilities and amenities.

In summary, the Greater Mohali Area Development Authority (GMADA) has been directed by the Punjab State Consumer Disputes Redressal Commission to either provide the complainants with possession of the plot as agreed or refund their money. The authority has also been fined Rs 40,000 to compensate for mental anguish, harassment, and litigation expenses.

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Mohali Development Body fined, directed to allocate plot or refund money

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